Ok, I will be completely frank here…I have always seen myself as a anti-Keynesian and I have said terrible things about Paul Krugman’s keynesianism and especially his view of the liquidity trap has made me extremely frustrated. However, there is no coming around the fact that he is a world-class economist.
Now Krugman is paying tribute to Market Monetarism. And yes, I am pretty damn proud of having coined the term Market Monetarism, but more important the Market Monetarist bloggers like Scott Sumner, David Beckworth, Bill Woolsey, Nick Rowe and Marcus Nunes are now being heard. I believe that this is of great importance if we want to see the global economy fundamentally pull out of this horrible slump.
Take a look at Krugman’s comment on Market Monetarism here.